HI all, I have a 1200 sf shop in the STL and things where going good until September 16 2008, after that date my sales fell off 20% . I have been working on getting it back with little luck so last week I handed out about 3,000 flyers that had some great deals on it ie; 16 2 top 9.99 - 12 3 top 7.99 - add travs for 2.99- . I got a great response sold about 60 of the specials in the first 2 days . When I made thoughts specials I took about 30-35% off the menu price. My food cost surly runs about 18-23% . I make my own dough ,sauce, sausage and so forth so at these low prices I still make money. But now when a guy calls up and orders a 16 ult supreme for $20.55 I cant look the guy in the face … What to do ?
Pretend you are cross eyed
But seriously, is your pizza worth $20? If it is, don’t worry about charging joe smith $20. Just because you are temporarily charging jim jones $12 it is only a temporary promotion. Eventual jim will also pay $20 if your pizza is worth it. If joe was looking for a bargain he would have found your $12 coupon also.
if my 16" ultimate supreme has 6 toppings, and I charge $1 for each additional topping, I would have charged $9.99 (the special for the 16" 2 top), plus $4, for the 4 additional toppings…only while the promotion was running.
Just be careful, experts are warning against deep discounting for extended periods of time right now, just to get your business back up. You might have a hard time raising your prices back up later.
You are also benefiting from low food costs right now. But as gas prices creap up, food costs will begin to rise. And at least my cheese vendor (Grande), is expecting higher cheese costs by October.
You can’t possibly be breaking even on the t ravs at $2.99. I bet your food cost for 10 ravs is about $2, plus a side of sauce, a souffle up and lid, parmesan, the styro container, and a bag.